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CERTIFIED AND INDEPENDENT BUSINESS VALUATION EXPERTS

With the experience of several hundred company evaluations, Capitalia offers professional, independent and quick company valuation service.

USE OF EVALUATION

Valuation of the company is an important step in the company sales process. The business evaluation offered by Capitalia, helps the owner to better understand the value of his company, before the actual sale. On the other hand, the service is often useful for clients who want to acquire another company. Our specialists are registered as certified professionals in the Enterprise Register’s database. Company valuations conducted by Capitalia can be used as an official valuation when re-assessing registered equity capital and submitted to the Enterprise Register.
The exact value of the company is also relevant when there are changes in the ownership structure of the company. It is necessary to know the share value, when one of the existing owners wants to purchase additional shares or exactly the opposite - sell his position and cash out. If the company wants to attract venture capital investments, it is necessary to properly evaluate the company’s worth, in order to secure the most advantageous financing terms.
By actively participating in the corporate loan, financial advisory and venture capital market, Capitalia business valuation specialists have attained substantial experience from the investor side of the M&A deals. We have evaluated more than hundred companies in various industries, largest of our projects can be found in our Experience list. Our specialists have conducted evaluations of start-ups, companies close to insolvency and other complicated cases; therefore, we are happy to take on more complex and unusual cases as well.

VALUATION SERVICES

COMPANY VALUATION REPORT

Capitalia develops a detailed company valuation report, by employing at least two different valuation methods. Based on the historical data and our analysis, we make forecasts about the operations of the company for up to 5 years. Valuation report contains relevant methodology as well as assumptions, description of operations, financial analysis and forecasts. We aim to develop the report within 10 working days, after we have received the necessary information and a prepayment. The full payment is made only after the client has approved the quality of the report.

EXPRESS VALUATION

Express valuation is very useful when it is necessary to estimate the value of the company quickly. Capitalia determines the company value by employing the multiple analysis method. We analyze the historical financial data and acquire relevant information about similar companies and transactions in the industry. Express valuation report contains operational information about the company, list of similar companies, relevant financial ratios and methodology. However, there may be cases when express valuation is not applicable, for example, companies who are completely new or are working in a niche industry. We aim to develop the express valuation report within 3 working days.

VALUATION METHODS

Before developing the valuation report, Capitalia specialists pick the most suitable valuation methods for each company. Additional information about the valuation methods and suggestions on how to increase the value of company can be found in our News section. Capitalia employs three commonly-accepted valuation methods:

INCOME-BASED VALUATION METHOD

To develop a solid financial performance forecast, Capitalia analyses historical financial data, as well as trends in the global and local economies and the particular industry. Revenue, cost, as well as equity investment and working capital analysis allows us to estimate the cash flow from operations in the upcoming years. To assess the present value of these cash flows and therefore the value of the company (based on the cash-flow valuation method) we calculate the cost of capital - the expected return from an investment, adjusted for risk. The future cash flows are discounted with the cost of capital rate, to obtain the present value. Even though making of financial forecasts is a fairly complicated process, the income-based valuation method is considered to be the most precise, as it takes into account the company’s individual situation and future development plans.

MARKET-BASED VALUATION METHOD

To estimate company’s value with the market-based valuation method, Capitalia analyses the market value of similar companies in the same industry. We gather the data about similar companies from the equity markets. We use the data to calculate various multiples that allow us to estimate the company’s value based on the profits, turnover or other financial variables. Since it is almost impossible to find companies with the same exact financial performance, our specialists adjust the multiples based on their experience in the field.

ASSET-BASED VALUATION METHOD

Capitalia estimates value of the company by subtracting the liabilities (bank loans, debt to suppliers, etc.) from the market value of company’s assets (including fixed assets, debtors and inventories). This method is less complicated, since it requires fewer assumptions and does not need any future forecasts. However, as it does not take into account intangible assets (e.g. brand, procedures, client loyalty), it is most often used when valuating companies that are close to insolvency, in cases when it is more profitable to simply sell the assets and discontinue operations.

PRICES

The following prices are applied for company valuation services:
Company valuation report from EUR 1500
Express valuation EUR 500
Prices don't include VAT

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